Question
Henderson Manufacturing Company Balance Sheet At December 31, 2018 ($ in 000s) Assets Current assets: Cash $ 1,750 Accounts receivable 4,250 Allowance for uncollectible accounts
Henderson Manufacturing Company Balance Sheet At December 31, 2018 ($ in 000s) | |||||
Assets | |||||
Current assets: | |||||
Cash | $ | 1,750 | |||
Accounts receivable | 4,250 | ||||
Allowance for uncollectible accounts | (500 | ) | |||
Finished goods inventory | 5,900 | ||||
Prepaid expenses | 3,900 | ||||
Total current assets | 15,300 | ||||
Long-term assets: | |||||
Investments | 3,500 | ||||
Raw materials and work in process inventory | 4,400 | ||||
Equipment | 22,000 | ||||
Accumulated depreciationequipment | (9,500 | ) | |||
Franchise | ? | ||||
Total assets | $ | ? | |||
Liabilities and Shareholders Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 7,700 | |||
Note payable | 13,000 | ||||
Interest payablenote | 500 | ||||
Deferred revenue | 3,900 | ||||
Total current liabilities | 25,100 | ||||
Long-term liabilities: | |||||
Bonds payable | 12,000 | ||||
Interest payablebonds | 700 | ||||
Shareholders equity: | |||||
Common stock | $ | ? | |||
Retained earnings | ? | ? | |||
Total liabilities and shareholders equity | ? |
Additional information ($ in 000s):
Certain records that included the account balances for the franchise and shareholders equity items were lost. However, a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.4. That is, total liabilities are 140% of total shareholders equity. Retained earnings at the beginning of the year was $3,700. Net income for 2018 was $2,800, and $800 in cash dividends were declared and paid to shareholders.
The investments represent treasury bills purchased in December 2018 that mature in January 2019. These are considered cash equivalents.
Interest on both the note and the bonds is payable annually.
The note payable is due in annual installments of $1,300 each.
Deferred revenue will be recognized equally over the next 18 months.
The common stock represents 500,000 shares of no par stock authorized, 300,000 shares issued and outstanding.
Required: Prepare a complete, corrected, classified balance sheet. (Do not round your intermediate calculations. Enter your answers in the order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started